Real Estate Demand

Nationally, the demand for residential and commercial real estate is increasing and is projected to continue to outpace supply. The astute investor explores this fact and identifies that for over 200 years, real estate has appreciated at approximately 6% nationally. Regionally and locally, during this 200 year period, certain cities have appreciated at a much greater rate because of the economics of Supply and Demand. In order to participate in these growth markets, most investors rely on 'getting lucky' and hope to live in the right place at the right time. 

Demand can be observed and by tracking the economic conditions of over 12,000 cities nationwide, Signil identifies opportunities nationwide so that you can participate in expanding real estate cities rather that waiting and hoping. 

National Demand

Here are the facts that are driving national demand: (1) overall population growth, (2) an increasing number of households, (3) shortage of supply, (4) largest segment of the population at their peak earning years (5) the second largest segment of the population leaving the nest and entering the renter and first time home buying age. 

First, according to research done by the Brookings Institution and from data obtained in the 2000 Census the population in the United States is expected to increase by nearly 33 percent by the year 2030. That's approximately 94 million more people than were counted in the 2000 Census. 

Second, because of the changing social influences in America, and with fewer people getting married or at least marrying later in life and the influence of increasing minority homebuyers, the expected demand on housing will continue to rise. Remember, rising demand results in rising prices.

Third, it is estimated over half of the homes, office building, stores and factories needed in the next 25 years do not exist today. With urban and suburban limitations on the availability of land, the supply of water driving regional growth and government initiated slow or no growth initiatives, the fight for this required real estate space will be an ongoing battle and will force growth to happen in very strategically located areas of the country. 

Fourth, the Baby Boomer generation, people born between 1946 and 1964, have reached their peak earning age, incomes the highest ever and more discretionary money exists than in any other generation. Those born in 1946 are 59 years old today and those born in 1964 are only 41 years old in 2005. This population, the largest generation at approximately 78 million people continues to increase demand for second homes in cities offering affordability, health care, good transportation systems, mild climate and cultural activities and vacation homes in resort market areas. 

And fifth, the Echo Boomer population, approximately 76 million people between the toddler and college ages are leaving the nest and will be out on their own, in their own homes and with their own jobs over the next 20 years. This real estate demand is captured by monitoring job growth, wage scales and affordability values and rents in cities across the country.

Let's Get Started

For more information about working with us, Contact Us today.